Energy Efficiency Standard for Social Housing post 2020 (EESSH2) review: interim guidance for social landlords

Background

1. In Housing to 2040, the Scottish Government made a commitment to seek the agreement of the social housing sector to bring forward the review of the Energy Efficiency Standard for Social Housing post 2020 (EESSH2) to begin in 2023, with a view to strengthening and realigning the standard with net zero requirements so that social housing leads the transition to zero direct emissions buildings.^[2]

2. Landlords are, we know, conscious of current financial pressures due to inflation, rising energy bills, and the development of the moratorium on rent increases that will affect their capacity to invest in their stock. Landlords are experiencing increased costs for construction and maintenance, adding pressure to the need for investment to be affordable, and are mindful of the cost impact on tenants. Within these constraints, action is still needed to progress towards net zero to meet climate change targets and to reduce fuel poverty.

3. The Report of the Zero Emissions Social Housing Taskforce (ZEST) recommended that the Scottish Government bring forward the review of EESSH2 to align with the net zero - and our guiding principles of a just transition that is fair to everyone and leaves no one behind.^[3] In our response to the ZEST Report we agreed to bring forward and accelerate the review of EESSH2, to commence in summer 2022 for completion in 2023, undertaking this review jointly with the social housing sector.^[4]

4. The review commenced in September 2022, and is expected to take approximately 9 months to complete. We will then consult on the recommendations from the review, and the final proposals for a new target will then be submitted for consideration by Scottish Ministers.

5. The ZEST report also makes the following recommendation:

Recommendation 4, Action 3: In order that time is not wasted planning for the requirements as they currently stand, if it is now likely the goalposts will shift, the Scottish Government and Scottish Housing Regulator should issue interim guidance on what measures should be prioritised during the review period.

6. This interim guidance delivers this recommendation.